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laiz [17]
3 years ago
5

Assume that the required reserve ratio is 20 percent. If the Federal Reserve buys $80 million in government securities from comm

ercial banks, then the money supply will immediately Multiple Choice increase by $0 with this transaction, and the maximum money-lending potential of the commercial banking system will increase by $400 million. increase by $0 with this transaction, but the maximum money-lending potential of the commercial banking system will increase by $320 million. increase by $80 million with this transaction, and the maximum money-lending potential of the commercial banking system will increase by another $400 million. increase by $80 million with this transaction, and the maximum money-lending potential of the commercial banking system will increase by another $320 million.
Business
1 answer:
Anni [7]3 years ago
5 0

Answer: increase by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million

Explanation:

Based on the information given in the question, the money multiplier will be calculated thus:

Money multiplier = 1/Required reserve ratio

where,

Required reserve ratio = 20%

Money Multiplier will now be:

= 1/0.20

= 5

Therefore, the maximum money-lending potential will be:

= $80 million × 5

= $400 million

Therefore, the money supply will by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million

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A deadweight loss is a consequence of a tax on a good because the tax a. induces the government to increase its expenditures. b.
zalisa [80]

Answer:

B) induces buyers to consume less, and sellers to produce less.

Explanation:

Taxes are a necessary evil since they always increase the price of the goods and services that consumers buy and decrease the amount of money that producers receive from selling their goods and services. But taxes are necessary and unavoidable.

But once a market assumes all the effects of existing taxes it reaches an equilibrium price that both consumers and producers are satisfied with. If a new tax is levied than the deadweight losses are greater since consumer surplus and producer surplus are both reduced. This will lead to a reduction in the incentive that both consumers and producers have to engage in transactions. Many times consumers will substitute heavily taxed goods for other goods since they feel they are getting more from consuming those goods (consumer surplus). The same happens to producers, many producers will change their heavily taxed goods for other goods.

If the price elasticity of demand or supply of a certain good is large (elastic demand and supply), the deadweight loss will be greater.

7 0
3 years ago
The bond market requires a return of 7.5 percent on the 3-year bonds issued by Beck Co. The 7.5 percent is referred to as the: A
mr Goodwill [35]

Answer:

The correct answer is letter "D": yield to maturity.

Explanation:

Yield to Maturity or YTM refers to the required market interest rate bonds posses. YTM represents the anticipated return investors could obtain in case they hold the bond until maturity. YTM is expressed as an annual rate and it is calculated using the following formula:

YTM = \sqrt[n]{\frac{Face Value}{Current Price}} - 1

where:

  • n = <em>number of years to maturity</em>
  • Face Value = <em>maturity value of the bond</em>
  • Current Price = <em>price of the bond today</em>
4 0
3 years ago
Molly Madison received "The Employee of the Month" Award at Internal Workings Remodeling Service in April. Molly would be consid
Tems11 [23]

Answer: Internal environment

Explanation: The internal environment is made of the components inside the company comprising of existing workers, administration, atmosphere, tools, job procedures and mostly corporate culture which has the capacity of affecting the workers' attitudes and conclusions of the company. In this case, Molly Madison is considered a part of the internal environment of the internal workings as she received the award for employee of the month.

4 0
3 years ago
Tell me about a time you were able to understand someone else's viewpoint that differed from your own. Describe the situation, y
RoseWind [281]

Answer:

<h3>"I have felt dissatisfied on the job when I feel underpaid and overworked. I don't mind working hard at all, but I don't like to feel as though I'm being taken advantage of." "When I see success few and far between, it is very unmotivating for me. I am a hunter and a true salesperson</h3>

7 0
3 years ago
Barbara buys the same market basket each week and spends $60 on it. This week Barbara brought $60 to the store but could not buy
Arisa [49]

Answer:

there was inflation

Explanation:

Inflation may be defined as the rise in the price or the increase in the cost of a product or commodities in the market. It is when you pay more price for the same commodity that you have bought it in a less price earlier.

When there is inflation, the price of goods in the market increases.

In the context, Barbara usually buys the same market basket every week at a price of $ 60. But this week she could not buy the market basket even though she had $ 60 with her. This is because the price of the market basket increased this week due to inflation and now cost more than $60. So Barbara could not buy the market basket.

4 0
3 years ago
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